Answer: higher than
Explanation: The stockholders of companies in the infant industry gain when they are protected from world competition
-Consumes in that country will therefore pay a price higher than the world price.
Answer: Option D
Explanation: Annuity due refers to the chain of equal payments that is made at the end of a period usually one year. The payments do not increase over time.
While in case of ordinary annuity the payment is done at the end of the period and do not rise with the passage of time.
Hence from the above we can conclude that the correct option is D.
Answer:
Motivational direction
Explanation:
The specific way a need is satisfied depends on the individual's unique history, learning experiences, and his or her cultural environment. In these example the need of the consumer is satisfied based on buying the branded sneakers listed which are considered to deliver positive benefits by other team members. Motivational direction is triggered once a need has been activated, a state of tension exists that drives the consumer to attempt to reduce or eliminate the need.
Complete question:
Today is January 1, 2009. The state of Iowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent. What is the APV of this subsidized loan? If you rounded in your intermediate steps, the answer may be slightly different from what you got. Choose the closest.
A. -$3,497,224.43 B. $417,201.05 C.$840,797 D. None of the above
Answer:
$840,797 is the APV of this subsidized loan
Solution:
Input the loan in a financial equation first and resolve the payment:
PV=10,000,000
N= 3I = 5%
PMT = 3,672,085
Now, find the APV of the loan:
CF0 = $10,000,000
CF1= -$3,502,085
= -$3,172,085 - .66 * $500,000CF2
= -$3,556,011CF3
= -$3,612,632I
= 8%
APV = $840,797